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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
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Caterpillar (CAT - Free Report) closed at $234.45 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Coming into today, shares of the construction equipment company had gained 10.5% in the past month. In that same time, the Industrial Products sector gained 4.3%, while the S&P 500 gained 3.44%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $4.51 per share, which would represent year-over-year growth of 41.82%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 14.95% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.64 per share and revenue of $65.11 billion. These results would represent year-over-year changes of +27.46% and +9.56%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% higher. Caterpillar is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 13.35. For comparison, its industry has an average Forward P/E of 12.03, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
Caterpillar (CAT - Free Report) closed at $234.45 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Coming into today, shares of the construction equipment company had gained 10.5% in the past month. In that same time, the Industrial Products sector gained 4.3%, while the S&P 500 gained 3.44%.
Wall Street will be looking for positivity from Caterpillar as it approaches its next earnings report date. On that day, Caterpillar is projected to report earnings of $4.51 per share, which would represent year-over-year growth of 41.82%. Meanwhile, our latest consensus estimate is calling for revenue of $16.38 billion, up 14.95% from the prior-year quarter.
CAT's full-year Zacks Consensus Estimates are calling for earnings of $17.64 per share and revenue of $65.11 billion. These results would represent year-over-year changes of +27.46% and +9.56%, respectively.
Investors should also note any recent changes to analyst estimates for Caterpillar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.57% higher. Caterpillar is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Caterpillar is holding a Forward P/E ratio of 13.35. For comparison, its industry has an average Forward P/E of 12.03, which means Caterpillar is trading at a premium to the group.
Meanwhile, CAT's PEG ratio is currently 1.11. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.